Sri Lanka Achieves Historic Budget Current Account Surplus After 38 Years: An In-Depth Analysis

Sri Lanka Achieves Historic Budget Current Account Surplus After 38 Years: An In-Depth Analysis

FINANCIAL CHRONICLE – Sri Lanka has recorded a surplus in the current account of the budget for the first time in 38 years in 2025, according to central bank data. This achievement is attributed to a surge in tax revenues and effective management of current spending. The central bank emphasized the importance of maintaining low spending to control inflation, despite some depreciation of the currency, particularly in the latter part of the year. …

Sri Lanka above target primary budget surplus partly due to central bank ‘deflation’

ECONOMYNEXT – Sri Lanka has recorded primary surpluses above International Monetary Fund targets, after steep rises in tax rates, despite large state salary hikes and welfare payments, with low inflation amid (largely) deflationary policy that kept inflation below the central bank’s target. (This column was originally published in the Echelon Magazine in November 2025) The primary expenditure is all expenses before interest costs. A country that…